The Bangalore bench of Income Tax Appellate Tribunal (ITAT) directs re-adjudication with respect to Long Term Capital Gain of sold property which was canceled by the civil court.
The Assessee Mangalagiri Tulasi,filed the appeal before the tribunal against the order passed under section 250 of the Income Tax Act, 1961 regarding the taxability of a sum of Rs.1,01,39,166/- as long-term capital gains from sale of a land.
Aggrieved by the order assesee filed an appeal before the CIT(A). The CIT(A) dismissed the appeal filed by the assessee because of non compliance of notice . Thereafter the assessee filed an appeal before the tribunal.
During the adjudication Ravi Shankar, the counsel for assessee argued that the assessee was never in receipt of notices issued from the Office of the CIT(A) as the same may have settled in the spam folder of the assessee’s email ID.Further the assessment was completed under section 148 r.w.s. 144 of the Act and assessee was never in receipt of the notices issued under section 148 of the Act.
Furthermore the assessee argued that the sale of property on which assessee has been made liable for long-term capital gains has been canceled by a Civil Court.
Nischal B, Department representatives supported the orders of the AO and the CIT(A).
Considering this fact the tribunal observed that the assessee should be given an opportunity to prove her case that the property in question for which she is made liable for long-term capital gains has not been sold / sale has been canceled by the Civil Court.
After analyzing the submission of both parties the bench comprising George George K, (Vice President) and Chandra Poojari, (Accountant Member)directs re-adjudication with respect to Long Term Capital Gain of sold property which was canceled by the civil court.
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